2010年-世界发展银行全球_Romania_-_Functional_Review___Public_Finance_Sector_100页_1mb

Romania Public Finance Sector Functional Review Summary

Core Content

This report provides a comprehensive functional review of the public finance sector in Romania, focusing on the Ministry of Public Finance (MoPF) and its related institutions, such as the National Agency for Fiscal Administration (ANAF). The review was conducted as part of a project funded by the EU and the Government of Romania, aiming to enhance the strategy, processes, and organization of public finance and revenue administration.

The review highlights that while Romania has made progress in improving public financial management, there are still significant challenges and opportunities for further reform. The focus is on shifting the public finance function from transactional control to a more policy and performance-oriented role. This includes improving budget credibility, enhancing expenditure prioritization, modernizing budget execution, accelerating EU fund absorption, improving revenue administration, strengthening the MoPF organizational structure, and enhancing IT and HR management.

Main Points and Recommendations

1. Budget Credibility and Macro Fiscal Discipline

• Issue: The budget lacks credibility, leading to deviations from original forecasts and undermining macro-fiscal discipline.
• Causes: Unrealistic revenue estimates, supplemental budgets, and in-year expenditure increases due to legislative mandates not aligned with the budget process.
• Reform Options:
  • 1.1 Institutionalize Prudent Revenue Estimation: Use best technical estimates, insulate revenue estimation from non-technical revisions, and ensure independent review by the Fiscal Council.
  • 1.2 Institutionalize Top-Down Budgeting: Create a Ministerial Finance Committee to align spending with government priorities and enable line ministries to allocate resources within defined ceilings.
  • 1.3 Monitor Fiscal Impact of New Legislation: Require fiscal impact assessments for legislative proposals and allow the Fiscal Council to publish independent estimates.

2. Strengthen Policy-Based Expenditure Prioritization

• Issue: The current budget process is input-focused, leading to inefficient and non-targeted cuts.
• Reform Options:
  • 2.1 Refocus Budget Dialogue on Policy and Efficiency: Introduce a strategic budget phase to prioritize expenditure and re-allocate resources based on efficiency savings.
  • 2.2 Build Capacity for Budget Analysis: Update job descriptions and qualifications in the Budget Department, and provide training on budget analysis for both MoPF and sector ministries.
  • 2.3 Synchronize Budget Calendar: Align the budget calendar of Law 500 and the Fiscal Responsibility Law (FRL) to improve integration and coherence.

3. Modernize Budget Execution and Treasury Functions

• Issue: Budget execution functions are fragmented, and reporting systems are manual and inefficient.
• Reform Options:
  • 3.1 Streamline Transactional Banking Services: Implement e-signature requirements, expand e-banking, and automate credit opening and payment processes.
  • 3.2 Improve Financial Reporting Capabilities: Integrate the Treasury General Ledger with payment systems and automate reporting functions.
  • 3.3 Integrate Budget Execution Functions: Create a centralized budget execution department and strengthen integration with debt and cash management.
  • 3.4 Improve Debt Management Functions: Establish a cash management committee, enhance risk management, and automate debt service payments.

4. Accelerate EU Structural and Cohesion Fund Absorption

• Issue: EU fund absorption is constrained by liquidity issues, administrative capacity, and low awareness among beneficiaries.
• Reform Options:
  • 4.1 Enhance Financing Capacity: Reallocate co-financing shares to disbursing programs and improve coordination between EU programming and budgeting.
  • 4.2 Enhance Administrative Capacity: Prioritize staffing for EU program implementation, especially in the Ministry of Transport, and streamline project approval procedures.

5. Modernize Revenue Administration

• Issue: Revenue collection performance is low, and compliance costs for taxpayers are high.
• Reform Options:
  • 5.1 Strengthen Compliance Policy: Implement taxpayer segmentation, improve risk-based audit selection, and enhance compliance for large and medium taxpayers.
  • 5.2 Reduce Administrative Costs: Simplify tax returns, promote e-filing, and reduce the number of tax payments.
  • 5.3 Reduce Compliance Costs: Restructure the payments system to minimize cash payments and improve taxpayer services.

6. Strengthen the MOPF Organizational Structure

• Issue: The MoPF has a fragmented first-tier management structure, which hinders efficiency and strategic focus.
• Reform Options:
  • 6.1 Consolidate First-Tier Management Structure: Reorganize the MoPF around core public finance functions to streamline operations and reduce fragmentation.

7. Strategic Management of IT Resources

• Issue: The IT environment is fragmented, with stand-alone systems and limited data sharing.
• Reform Options:
  • 7.1 Strengthen IT Governance: Establish an IT governance board and conduct a detailed IT audit.
  • 7.2 Integrated Financial Management Information System: Develop a centralized system for data exchange and reporting across budget, treasury, and accounting functions.
  • 7.3 Modernize IT Support to ANAF: Implement an integrated shared IT environment for tax administration processes.

8. HR Management and Corporate Communications

• Issue: HR management and internal communications are not aligned with strategic goals.
• Reform Options:
  • 8.1 Introduce Strategic HR Management: Align staffing and skills with strategic priorities and improve internal communication.
  • 8.2 Enhance Corporate Communications: Improve the visibility and effectiveness of the MoPF's communication strategy to support broader public finance reforms.

Key Information

• The Fiscal Responsibility Law (FRL) has strengthened macro-fiscal discipline and introduced independent fiscal oversight.
• Romania has implemented a Treasury Single Account (TSA) and electronic payment systems, but automation and integration are still limited.
• The National Agency for Fiscal Administration (ANAF) is central to revenue administration, but compliance and collection performance remain low.
• The MoPF has a relatively lean structure but needs to consolidate its management and improve HR and IT strategies.
• EU Structural and Cohesion Funds are a major focus for reform, with the MoPF playing a key coordinating role.
• The reform program includes 21 measures, with varying impacts and timelines, from short-term to long-term.

Conclusion

This review outlines a strategic vision for Romania’s public finance sector, emphasizing the need for a shift from transactional control to policy and performance orientation. It identifies key areas for reform, including budget credibility, expenditure prioritization, EU fund absorption, revenue administration, IT modernization, and HR management. The proposed reforms aim to enhance the efficiency, transparency, and effectiveness of public financial management in Romania, aligning it with international best practices and EU convergence goals.